Tuesday, April 27, 2010

Pound Rises with Increasing U.K. House Prices

The Great Britain pound gained today, paring its previous losses, after the report about the rising house prices increased the confidence that the economic recovery in the U.K. is strengthening.

These news have brought necessary refreshment to support the sterling’s performance after the concerns about the budget deficit and the uncertainty about the election’s outcome. In fact, the talks began that the Conservatives will win the election and will form the government strong enough to deal with the budget shortage, further strengthening the pound. The resulting optimism let some analysts expect that the pound will rise to 1.56 level against the U.S. dollar.

GBP/USD traded at 1.5472 as of 13:00 GMT today after opening at 1.5384. EUR/GBP traded near 0.8620 down from its opening level of 0.8673.

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